The Expectancy Theory Model of Motivation

One process model of motivation, expectancy theory, will be discussed and applied in the context of compensation because it is the most useful (or practical) in understanding the relationship between compensation, rewards, and motivation. This discussion has been part of the book up to the 6th edition, but removed because some reviewers considered it as a repetition of material covered in OB courses. We offer it here as a supplement to show how Expectancy Theory applies specifically to the HR field.

The Expectancy Theory Model of Motivation

The expectancy theory model of motivation is probably the most practical and powerful tool for human resource managers to demonstrate to other managers the importance of all human resource functions in creating a motivating environment.1 If the expectancy theory model is operationalized and followed in an organization, there is a strong probability that its employees will be highly motivated. The theory even allows managers to use numbers to determine the strength of the motivation of their employees, although this is rarely done. The expectancy model discussed here was developed by Porter and Lawler (1973).

At the heart of the model are three components, as shown in Figure 1: the effort-performance probability (EP), the performance-outcome probability (PO), and the value of an outcome (V). Expectancy suggests that an employee’s productivity ultimately depends on his or her answers to three questions:

Figure 1

1. Given your abilities, experiences, self-confidence, and your understanding of your supervisor’s expectations, on a scale of zero to one, what is the probability—your gut feeling—that your effort will result in a superior performance? (Can I do it?)

2. On a scale from zero to one, how sure are you that when you do a good job your boss will reward you? (What is in it for me?)

3. Of what value is the outcome to you? (How much do I want it?)

The complete model is shown in Figure 2. Effort-performance probability (EP) is the likelihood that an employee’s effort results in high performance. If the employee is not prepared, has not understood the explanations regarding expectations, and has low self-confidence, his or her estimation of the probability to perform well will be low (e.g., .1 or .2). A more experienced employee may feel a probability of .5 or .6 in succeeding, and a highly skilled, experienced, self-confident employee will be quite optimistic in succeeding, say .8 or .9, or will be absolutely sure: 1.0.

Figure 2

Performance-outcome probability (PO) is the likelihood—as perceived by the employee—that a high performance will be rewarded. The linkage between performance and outcome (rewards) has to be made clear to the employee. This is the responsibility of the manager.

The value of an outcome or reward (V) is more difficult to measure. It would be easy if only money were involved—for example, bonuses or pay raises—but many outcomes are intangibles, such as praise, recognition, and intrinsic rewards, or have value beyond money, such as promotion, more vacation time, or a dinner with the boss. The value of an outcome is determined on a scale from –1 to +1 and is based on the personal preferences of each employee. A younger employee, for example, may value money (.9), may not care as much about a pension plan (.2), and may dislike a transfer to headquarters (-.6) (the minus sign is a reminder that job outcomes can be negative, that is, be demotivators). An older employee may have quite different preferences: .4 for money, .8 for a pension plan, and .7 for a transfer.

Of more practical importance to managers are the three other components of the expectancy model: ability, role clarity, and equity (boxes A, B, and C in Figure 2). Ability refers to the personal characteristics the employee brings to the job. It also symbolizes one of the most crucial decisions a manager must make: hiring the right person...

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The ExpectancyTheory of Motivation
Mr. Jeffrey Kiger
Western Governor’s University
LET 1 Task 1
Abstract
The ExpectancyTheory of Motivation was developed by Victor Vroom in 1964. The theory is not without its critics however, most of the evidence is supportive. The ExpectancyTheory helps to explain the motivations of employees in both a positive and negative ways. A lot of people in the workforce feel this way about their jobs or careers. Although they have probably never thought much about why they feel this way or asked themselves “what can I do to overcome these feelings?”
The ExpectancyTheory of Motivation
There are 3 relationships that are associated with the expectancytheory of motivation. The first relationship is effort-performance, which is the perception by employees that a certain amount of effort will lead to an acceptable performance standard. The second relationship that this theory explains is that individuals believe the desirable outcomes are the result of performing at a certain level. The final relationship that is related to the expectancytheory of motivation concerns...

...Applying ExpectancyTheory as an Approach to Improve Motivation
One challenge many companies face is employee motivation. Business success is largely dependent upon the ability for companies to motivate their employees to achieve the best results. Because of this, many have researched organizational motivation and theorized on the subject. One widely accepted concept is Victor Vroom’s expectancytheory. Expectancytheory is based on the premise that employees will be motivated to perform at their highest levels when they expect that their efforts will be rewarded. According to Vroom, three key relationships must be present to motivate employees. First is the effort-performance relationship, second is the performance-reward relationship, and finally the reward-personal goals relationship. When all three relationships are met, his theory is that employees will be motivated to exert a high level of effort (Robbins &amp; Judge, 2007).
In the given company scenario, an audio company has developed a new production process so that employees can meet the company’s high production standards and goals. Supervisor A’s employees have not been successful with the new process or goals. Supervisor B has spoken informally to many of these employees about the process and company goals. While this is not the ideal approach in having employee...

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1
ExpectancyTheory of Motivation, Applied LET 1: 317.1.1-06
Running head: EXPECTANCYTHEORY OF MOTIVATION, APPLIED
2
Vroom's expectancytheory of motivation seeks to illustrate how employees think and why they exhibit certain levels of motivation in a working environment. The force of employee motivation is equal to a function of three relationships: effort-performance, performance-reward and rewardspersonal goals. Motivation is affected by a positive or negative change in any of these three relationships. As such, management must take these relationships into account to improve employee performance and achieve company goals. In the case of Supervisor A's employees, the first relationship to consider is that of effortperformance. This relationship illustrates the employee's perception that his or her effort will result in a particular level of performance. If he or she tries very hard, will he or she actually reach the established goal? Some of Supervisor A's employees feel that they do not have the dexterity required to successfully reach production goals. Others with no difficulty—even top producers—aren't bothering to exert the extra effort required to reach goals. Management can address...

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Effort – performance relationship is the probability perceived by the individual that exerting a given amount of effort will lead to performance (Judge, 1998). This theory is based on the employee’s assumption that if they work hard and devote their best ability to their job that they will get a good performance appraisal. The Expectancy component describes individuals who thrive on controlling the outcome of their task or project. This individual will assess tasks given and most likely will not accept tasks that they feel are easily obtainable, but on the other hand they also will not accept a task that they perceive as too difficult. This individual likes a challenge but will only agree to the task if he/she believes that they are more than capable of completing the project and meeting the deadline. The situation will lead to a favorable outcome, then that favorable outcome becomes the employee’s motivation and gratification....

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Companies need to understand the practice of motivation for them to achieve full output from its employees which will lead to full output from the company. The expectancytheory of motivation proposed by Victor Vroom will help companies to understand how to achieve this motivation level.
The theory of motivation states that employee’s motivation is the outcome of how much of individual wants a reward. The theory revolves around three distinct perceptions. The first component of the theory is the Effort-performance relationship. The provability perceived by the individual that exerting a given amount of effort will lead to performance (Robbins &amp; Judge, 2007, p. 208). The second component of this theory is Performance-reward relationship. The degree to which the individual believes that performing at a particular level will lead to the attainment of a desire outcome (Robbins &amp; Judge, 2007, p. 208). The third component of this theory is Rewards-personal goals relationship. The degree to which organizational rewards satisfy an individual’s personal goals or needs...